E-Commerce, Its Impact & Trends & Opportunities On Supply Chain Management

Introduction:  Electronic commerce, commonly known as (electronic marketing) e-commerce or eCommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. The influences of e-commerce effects on electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, automated data collection systems,etc. Modern electronic commerce typically uses the World Wide Web at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail as well.

1.1.    Concepts & Definition: Electronic commerce or e-commerce refers to a wide range of online business activities for products and services. It also pertains to “any form of business transaction in which the parties interact electronically rather than by physical exchanges or direct physical contact.” E-commerce is usually associated with buying and selling over the Internet, or conducting any transaction involving the transfer of ownership or rights to use goods or services through a computer-mediated network. Though popular, this definition is not comprehensive enough to capture recent developments in this new and revolutionary business phenomenon. A more complete definition is: E-commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals.

So, the definition says-E-commerce is nothing but conduction of financial transactions through electronic means. This is a narrower view, actually, we can conclude that it is the art and science of selling products and/or services over the Internet, because there are still a lot of people trying to sell things over the 'Net who aren't actually conducting financial transactions electronically.

1.2.    Market Research: In early 1999, it was widely recognized that because of the interactive nature of the Internet, companies could gather data about prospects and customers in unprecedented amounts -through site registration, questionnaires, and as part of taking orders. The issue of whether data was being collected with the knowledge and permission of market subjects had been raised. Since then people began to associate a word "ecommerce" with the ability of purchasing various goods through the Internet using secure protocols and electronic payment services.

1.3     Timeline:
•    1982: Minitel was introduced nationwide in France by France Telecom and used for online ordering.
•    1987: Swreg begins to provide software and shareware authors means to sell their products online through an electronic Merchant account.
•    1990: Tim Berners-Lee writes the first web browser, WorldWideWeb, using a NeXT computer.
•    1992: J.H. Snider and Terra Ziporyn publish Future Shop: How New Technologies Will Change the Way We Shop and What We Buy. St. Martin's Press. ISBN 0312063598.
•    1994: Netscape releases the Navigator browser in October under the code name Mozilla. Pizza Hut offers online ordering on its Web page. The first online bank opens. Attempts to offer flower delivery and magazine subscriptions online. Adult materials also become commercially available, as do cars and bikes. Netscape 1.0 is introduced in late 1994 SSL encryption that made transactions secure.
•    1995: Jeff Bezos launches Amazon.com and the first commercial-free 24 hour, internet-only radio stations, Radio HK and NetRadio start broadcasting. Dell and Cisco begin to aggressively use Internet for commercial transactions. eBay is founded by computer programmer Pierre Omidyar as AuctionWeb.
•    1998: Electronic postal stamps can be purchased and downloaded for printing from the Web.
•    1999: Business.com sold for US $7.5 million to eCompanies, which was purchased in 1997 for US $149,000. The peer-to-peer filesharing software Napster launches. ATG Stores launches to sell decorative items for the home online.
•    2000: The dot-com bust.
•    2002: eBay acquires PayPal for $1.5 billion [2]. Niche retail companies CSN Stores and NetShops are founded with the concept of selling products through several targeted domains, rather than a central portal.
•    2003: Amazon.com posts first yearly profit.
•    2007: Business.com acquired by R.H. Donnelley for $345 million.
•    2008: US eCommerce and Online Retail sales projected to have reached $204 billion, an increase of 17 percent over 2007.

1.4     Business Applications:
Some common applications related to electronic commerce are the following:
•    Email
•    Enterprise content management
•    Instant messaging
•    Newsgroups
•    Online shopping and order tracking
•    Online banking
•    Online office suites
•    Domestic and international payment systems
•    Shopping cart software
•    Teleconferencing
•    Electronic tickets

1.5     Types of E-Commerce: The major different types of e-commerce are: business-to-business (B2B); business-to-consumer (B2C); business-to-government (B2G); consumer-to-consumer (C2C);and mobile commerce (m-commerce).
a. B2B e-commerce: B2B e-commerce is simply defined as e-commerce between companies. This is the type of e-commerce that deals with relationships between and among businesses. The B2B market has two primary components: e-frastructure and e-markets.
i. Efrastructure-is the architecture of B2B, primarily consisting of the following:
● logistics - transportation, warehousing and distribution (e.g., Procter and Gamble);
● application service providers - deployment, hosting and management of packaged software from a central facility (e.g., Oracle and Linkshare);
● outsourcing of functions in the process of e-commerce, such as Web-hosting, security and customer care solutions (e.g., outsourcing providers such as eShare, NetSales, iXL Enterprises and Universal Access);
● auction solutions software for the operation and maintenance of real-time auctions in the Internet (e.g., Moai Technologies and OpenSite Technologies);
● content management software for the facilitation of Web site content management and delivery (e.g., Interwoven and ProcureNet); and
● Web-based commerce enablers (e.g., Commerce One, a browser-based, XMLenabled purchasing automation software).
ii. E-markets- are simply defined as Web sites where buyers and sellers interact with each other and conduct  transactions.
Indian Scenario in B2B:
•    The more common B2B examples and best practice models are IBM, Hewlett Packard (HP), Cisco and Dell. Cisco, for instance, receives over 90% of its product orders over the Internet.
•    Most B2B applications are in the areas of supplier management (especially purchase order processing), inventory management (i.e., managing order-ship-bill cycles), distribution management (especially in the transmission of shipping documents), channel management (i.e., information dissemination on changes in operational conditions), and payment management (e.g., electronic payment systems or EPS).

b. B2C e-commerce: Business-to-consumer e-commerce, or commerce between companies and consumers, involves customers gathering information; purchasing physical goods (i.e., tangibles such as books or consumer products) or information goods (or goods of electronic material or digitized content, such as software, or e-books); and, for information goods, receiving products over an electronic network. It is the second largest and the earliest form of e-commerce. Its origins can be traced to online retailing (or e-tailing). Thus, the more common B2C business models are the online retailing  companies such as Amazon.com, Drugstore.com, Beyond.com, Barnes and Noble and ToysRus. Other B2C examples involving information goods are E-Trade and Travelocity. The more common applications of this type of e-commerce are in the areas of purchasing products and information, and personal finance management, which pertains to the management of personal investments and finances with the use of online banking tools (e.g., Quicken). B2C e-commerce reduces transactions costs (particularly search costs) by increasing consumer access to information and allowing consumers to find the most competitive price for a product or service. B2C e-commerce also reduces market entry barriers since the cost of putting up and maintaining a Web site is much cheaper than installing a “brick-and-mortar” structure for a firm. In the case of information goods, B2C e-commerce is even more attractive because it saves firms from factoring in the additional cost of a physical distribution network. Moreover, for countries with a growing and robust Internet population, delivering information goods becomes increasingly feasible.

c. B2G e-commerce:Business-to-government e-commerce or B2G is generally defined as commerce between companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations. This kind of e-commerce has two features: first, the public sector assumes a pilot/leading role in establishing e-commerce; and second, it is assumed that the public sector has the greatest need for making its procurement system more effective. Web-based purchasing policies increase the transparency of the procurement process (and reduces the risk of irregularities). To date, however, the size of the B2G ecommerce market as a component of total e-commerce is insignificant, as government e-procurement systems remain undeveloped.
d. C2C e-commerce: Consumer-to-consumer e-commerce or C2C is simply commerce between private individuals or consumers. This type of e-commerce is characterized by the growth of electronic marketplaces and online auctions, particularly in vertical industries where firms/businesses can bid for what they want from among multiple suppliers.16 It perhaps has the greatest potential for developing new markets.
 

1.6 Factors Effecting E-Commerce:  There are at least three major forces affectinge-commerce viz. economic forces, marketing and customer interaction forces, and technology, particularly multimedia convergence.
(a) Economic forces. -One of the most evident benefits of e-commerce is economic efficiency resulting from the reduction in communications costs, low-cost technological infrastructure, speedier and more economic electronic transactions with suppliers, lower global information sharing and advertising costs, and cheaper customer service alternatives.
(b) Technology forces- Technological advances in digitizing content, compression and the promotion of open  systems technology have paved the way for the convergence of communication services into one single platform. This in turn has made communication more efficient, faster, easier, and more economical as the need to set up separate networks for telephone services, television broadcast, cable television, and Internet access is eliminated. From the standpoint of firms/businesses and consumers, having only one information provider means lower communications costs.
(c)Consumers (in a business-to-consumer transaction) who: Form a critical mass of the population with access to the Internet and disposable income enabling widespread use of credit cards; and  Possess a mindset for purchasing goods over the Internet rather than by physically inspecting items.
(d) Firms/Businesses (in a business-to-business transaction) that together form a critical mass of companies (especially within supply chains) with Internet access and the capability to place and take orders over the Internet.
(e) Government, to establish:  A legal framework governing e-commerce transactions (including electronic documents,signatures, and the like); and  Legal institutions that would enforce the legal framework (i.e., laws and regulations) and protect consumers and businesses from fraud, among others. And finally,
(f) the Internet, the successful use of which depends on the following: A robust and reliable Internet infrastructure; and  A pricing structure that doesn’t penalize consumers for spending time on and buying goods over the Internet (e.g., a flat monthly charge for both ISP accessand local phone calls).
2.    Issues and Prospectus: Various applications of e-commerce are continually affecting trends and prospects for business over the Internet, including e-banking, e-tailing and online publishing/online retailing.
2.1 Beneficial Issues:
a)    Benefits of e-Commerce
 • Expanded Geographical Reach
 • Expanded Customer Base
• Increase Visibility through Search Engine Marketing
• Provide Customers valuable information about your business
• Available 24/7/365 - Never Close
• Build Customer Loyalty
• Reduction of Marketing and Advertising Costs
• Collection of Customer Data
b) Basic Benefits of e Business e-Commerce o increase sales - this is the first thing that people consider  when dealing w e-commerce
   o decreasing costs
   o increase profits
              o understanding that profits is not the same as sales
   o Expands the size of the market from regional to national or national to international
   o Contract the market
   o reach a narrow market
              o target market segmentation allows you to focus on a more 
                   select group of customers
              o and therefore have a competitive advantages in satisfying them
2.2    Prospects:
a.    Inventory Control: Are you going to have more than one of the exact same piece of merchandise in your store? If so, you will need some sort of inventory control. Your website will need to track how many of an item you have in stock. It will need to subtract stock when it is purchased, and remove the listing when the item is out of stock.

Payment
There are plenty of payment options out there. Obviously, you can take credit cards numbers directly and process those with your local bank. If that is the case, you will need a secure web server so that the credit card data is encrypted.
The alternative is to use a service like PayPal or 2CheckOut. Both let you take all the customer information except the payment info. Then you pass the user out to their site, and send them back to your own site once you've paid.

Shipping
There are several different ways that you can calculate shipping. The first, and most accurate, is exact cost by weight. Several shipping companies will let your web site communicate directly with theirs to get accurate shipping costs based on zip code and weight.
b.    Electronic Payment System (EPS): An electronic payment system (EPS) is a system of financial exchange between buyers and sellers in the online environment that is facilitated by a digital financial instrument (such as encrypted credit card numbers, electronic checks, or digital cash) backed by a bank, an intermediary, or by legal tender. EPS plays an important role in e-commerce because it closes the e-commerce loop. In developing countries, the underdeveloped electronic payments system is a serious impediment to the growth of e-commerce. In these countries, entrepreneurs are not able to accept credit card payments over the Internet due to legal and business concerns. The primary issue is transaction security.The absence or inadequacy of legal infrastructures governing the operation of e-payments is also a concern. Hence, banks with e-banking operations employ service agreements between themselves and their clients.
c.    Online Publishing: Online publishing is the process of using computer and specific types of software to combine text and graphics to produce Web-based documents such as newsletters, online magazines and databases, brochures and other promotional materials, books, and the like, with the Internet as a medium for publication.
d.    e-tailing: E-tailing (or electronic retailing) is the selling of retail goods on the Internet. It is the most common form of business-to-consumer (B2C) transaction. [B2C will discussed later…]
e.    e-Banking: E-banking includes familiar and relatively mature electronically-based products in developing markets, such as telephone banking, credit cards, ATMs, and direct deposit. It also includes electronic bill payments and products mostly in the developing stage, including stored-value cards (e.g., smart cards/smart money) and Internet-based stored value products.
 

3.    Present Scenarios:
Mostly Asian countries introducing e-banking, are highlighted or taken as case studies…
3.1. Status: E-banking in developing countries is in the early stages of development. Most banking in developing countries is still done the conventional way. However, there is an increasing growth of online banking, indicating a promising future for online banking in these countries. Below is a broad picture of e-banking in few ASEAN countries.
a.    China
In China, while banks issue credit cards and while many use debit cards to draw directly from their respective bank accounts, very few people use their credit cards for online payment. Cash-on-delivery is still the most popular mode of e-commerce payment. Nonetheless, online payment is gaining popularity because of the emergence of Chinapay and Cyber Beijing, which offer a city-wide online payment system
b.    Philippine
In the Philippines, Citibank, Bank of the Philippine Islands (BPI), Philippine National Bank, and other large banks pioneered e-banking in the early 1980s. Interbank networks in the country like Megalink, Bancnet, and BPI Expressnet were among the earliest and biggest starters of ATM (Automated Teller Machines) technology. BPI launched its BPI Express Online in January 2000. The most common online financial services include deposits, fund transfers, applications for new accounts, Stop Payment on issued checks, housing and auto loans, credit cards, and remittances.
c.    Singapore
In Singapore, more than 28% of Internet users visited e-banking sites in May 2001. Research by NetValue (an Internet measurement company) shows that while the number of people engaging in online banking in Singapore has increased, the average time spent at sites decreased by approximately four minutes from March 2001 to May 2001. This decline can be attributed to the fact that more visitors spend time completing transactions, which take less time than browsing different sites. According to the survey, two out of three visitors make a transaction. All major banks in Singapore have an Internet presence. They offer a wide range of products directly to consumers through proprietary Internet sites. These banks have shifted from an initial focus on retail-banking to SME and corporate banking products and services.
Among the products offered are:
•    Fund transfer and payment systems;
•    Integrated B2B e-commerce product, involving product selection, purchase order, invoice generation and payment;
•    Securities placement and underwriting and capital market activities;
•    Securities trading; and
    Retail banking.
d.    Malaysia
E-banking in Malaysia emerged in 1981 with the introduction of ATMs. This was followed by tele-banking in the early 1990s where telecommunications devices were connected to an automated system through the use of Automated Voice Response (AVR) technology. Then came PC banking or desktop banking using proprietary software, which was more popular among corporate customers than retail customers. On June 1, 2000, the Malaysian Bank formally allowed local commercial banks to offer Internet banking services. On June 15, 2000, Maybank (www.maybank2U.com), one of the largest banks in Malaysia, launched the country’s first Internet banking services. The bank employs 128-bit encryption technology to secure its transactions. Other local banks in Malaysia offering e-banking services are Southern Bank, Hong Leong Bank, HSBC Bank, Multi-Purpose Bank, Phileo Allied Bank and RHB Bank. Banks that offer WAP or Mobile banking are OCBC Bank, Phileo Allied Bank and United Overseas Bank. The most common e-banking services include banking inquiry functions, bill payments, credit card payments, fund transfers, share investing, insurance, travel, electronic shopping, and other basic banking services
3.2 Market factors, Obstacles, Problems - affecting the growth of e-banking in developing countries: Human tellers and automated teller machines continue to be the banking channels of choice in developing countries. Only a small number of banks employ Internet banking. Among the middle- and high-income people in Asia questioned in a McKinsey survey, only 2.6% reported banking over the Internet in 2000. In India, Indonesia, and Thailand, the figure was as low as 1%; in Singapore and South Korea, it ranged from 5% to 6%. In general, Internet banking accounted for less than 0.1% of these customers’ banking transactions, as it did in 1999. The Internet is more commonly used for opening new accounts but the numbers are negligible as less than 0.3% of respondents used it for that purpose, except in China and the Philippines where the figures climbed to 0.7 and 1.0%, respectively. This slow uptake cannot be attributed to limited access to the Internet since 42% of respondents said they had access to computers and 7% said they had access to the Internet.
•    The chief obstacle in Asia and throughout emerging markets is security. This is the main reason for not opening online banking or investment accounts. Apparently, there is also a preference for personal contact with banks.
•    Access to high-quality products is also a concern. Most Asian banks are in the early stages of Internet banking services, and many of the services are very basic.
There is a potential for increased uptake of e-banking in Asia. Respondents of the McKinsey survey gave the following indications:
1. Lead users: 38% of respondents indicated their intention to open an online account in the near future. These lead users undertake one-third more transactions a month than do other users, and they tend to employ all banking channels more often.
2. Followers: An additional 20% showed an inclination to eventually open an online account, if their primary institution were to offer it and if there would be no additional bank charges.
3. Rejecters: 42% (compared to the aggregate figure of 58% for lead users and followers) indicated no interest in or an aversion to Internet banking. It is important to note that these respondents also preferred consolidation and simplicity, i.e., owning fewer banking products and dealing with fewer financial institutions.
Less than 13% of the lead users and followers indicated some interest in conducting complex activities over the Internet, such as trading securities or applying for insurance, credit cards, and loans. About a third of lead users and followers showed an inclination to undertake only the basic banking functions, like ascertaining account balances and transferring money between accounts, over the Internet.

4.    E-commerce & E-Business: E-commerce is usually associated with buying and selling over the Internet, or conducting any transaction involving the transfer of ownership or rights to use goods or services through a computer-mediated network. That’s why, some uses e-commerce and e-business interchangeably, they are distinct concepts.
•    In e-commerce, information and communications technology (ICT) is used in inter-business or inter-organizational transactions (transactions between and among firms/organizations) and in business-to-consumer transactions (transactions between firms/organizations and individuals).

•    In e-business, on the other hand, ICT is used to enhance one’s business. It includes any process that a business organization (either a for-profit, governmental or non-profit entity) conducts over a computer-mediated network. A more comprehensive definition of e-business is:
“The transformation of an organization’s processes to deliver additional customer value through the application of technologies, philosophies and computing paradigm of the new economy.”

Three primary processes are enhanced in e-business:
1. Production processes, which include procurement, ordering and replenishment of stocks; processing of payments; electronic links with suppliers; and production control processes, among others;
2. Customer-focused processes, which include promotional and marketing efforts, selling over the Internet, processing of customers’ purchase orders and payments, and customer support, among others;
3. Internal management processes, which include employee services, training, internal information-sharing, video-conferencing, and recruiting. Electronic applications enhance information flow between production and sales forces to improve sales force productivity. Workgroup communications and electronic publishing of internal business information are likewise made more efficient.

5.    E-commerce & Supply Chain Management: Supply Chain Management means coordinating, scheduling and controlling procurement, production, inventories and deliveries of products and services to customers. The SCM is the backbone of Ecommerce, a very critical component of E-commerce. Supply Chain Efficiency means having the right product at the right place at the right time, can save money/reduce costs, and can enhance cash utilization. Electronic commerce and the Internet are fundamentally changing the nature of supply chains, and redefining how consumers learn about, select, purchase, and use products and services. The result has been the emergence of new business-to business supply chains that are consumer-focused rather than product-focused. They also provide customized products and services. E-commerce impacts supply chain management in a variety of keyways. These include:
 i.    Cost efficiency: E-commerce allows transportation companies of all sizes to exchange cargo documents electronically over the Internet. E-commerce enables shippers, freight forwarders and trucking firms to streamline document handling without the monetary and time investment required by the traditional document delivery systems. By using e-commerce, companies can reduce costs, improve data accuracy, streamline business processes, accelerate business cycles, and enhance customer service. Ocean carriers and their trading partners can exchange bill of lading instructions, freight invoices, container status messages, motor carrier shipment instructions, and other documents with increased accuracy and efficiency by eliminating the need to re-key or reformat documents. The only tools needed to take advantage of this solution are a personal computer and an Internet browser.
ii.    Changes in the distribution system: E-commerce will give businesses more flexibility in managing the increasingly complex movement of products and information between businesses, their suppliers and customers. E-commerce will close the link between customers and distribution centers. Customers can manage the increasingly complex movement of products and information through the supply chain.
iii.    Customer orientation: E-commerce is a vital link in the support of logistics and transportation services for both internal and external customers. E-commerce will help companies deliver better services to their customers, accelerate the growth of the e-commerce initiatives that are critical to their business, and lower their operating costs. Using the Internet for e-commerce will allow customers to access rate information, place delivery orders, track shipments and pay freight bills. E-commerce makes it easier for customers to do business with companies: Anything that simplifies the process of arranging transportation services will help build companies' business and enhance shareholder value. By making more information available about the commercial side of companies, businesses will make their web site a place where customers will not only get detailed information about the services the company offers, but also where they can actually conduct business with the company. Ultimately, web sites can provide a universal, self-service system for customers. Shippers can order any service and access the information they need to conduct business with transportation companies exclusively online. E-commerce functions are taking companies a substantial step forward by providing customers with a faster and easier way to do business with them.
iv.    Shipment tracking: E-commerce will allow users to establish an account and obtain real-time information about cargo shipments. They may also create and submit bills of lading, place a cargo order, analyze charges, submit a freight claim, and carry out many other functions. In addition, e-commerce allows customers to track shipments down to the individual product and perform other supply chain management and decision support functions. The application uses encryption technology to secure business transactions.
v.    Shipping notice: E-commerce can help automate the receiving process by electronically transmitting a packing list ahead of the shipment. It also allows companies to record the relevant details of each pallet, parcel, and item being shipped.
vi.    Freight auditing: This will ensure that each freight bill is efficiently reviewed for accuracy. The result is a greatly reduced risk of overpayment, and the elimination of countless hours of paperwork, or the need for a third-party auditing firm. By intercepting duplicate billings and incorrect charges, a significant percent of shipping costs will be recovered. In addition, carrier comparison and assignment allows for instant access to a database containing the latest rates, discounts, and allowances for most major carriers, thus eliminating the need for unwieldy charts and tables.
vii.    Shipping Documentation and Labeling: There will be less need for manual intervention because standard bills of lading, shipping labels, and carrier manifests will be automatically produced; this includes even the specialized export documentation required for overseas shipments. Paperwork is significantly reduced and the shipping department will therefore be more efficient.
viii.    Online Shipping Inquiry: This gives instant shipping information access to anyone in the company, from any location. Parcel shipments can be tracked and proof of delivery quickly confirmed. A customer's transportation costs and performance can be analyzed, thus helping the customer negotiate rates and improve service.

6.    Future of E-commerce in India:
Declining costs, increasing functionality and the usage of access devices like PCs connected to the Internet and Web-enabled mobile phones, the declining price of Web servers, advances in programming technologies and technologies that simplify usage of computers by ordinary people will drive the changes in e-commerce and define its future. Here are some of the changes that we can anticipate today.
6.1    Survey Results:The low cost of the PC and the growing use of the Internet has shown the tremendous growth of Ecommerce in India, in the recent years. According to the Indian Ecommerce Report released by Internet and Mobile Association of India (IAMAI) and IMRB International, “ The total online transactions in India was Rs. 7080 crores (approx $1.75 billion) in the year 2006-2007 and expected to grow by 30% to touch 9210 crores (approx $2.15 billion) by the year 2007-2008. According to a McKinsey-Nasscom report the e-commerce transactions in India are expected to reach $100 billion by the 2008. Although, as compared to the western countries, India is still in is its initial stage
6.2    How to attract Indian “Online Customers”?
•    Goods should have value for the customer along with quality.
•    Security is promised.
•    Selling Brand articles.
•    Establishing trust and winning confidence.
•    Providing easy guidance.
•    Clear information regarding delivery time.
•    Articles ordered and the article delivered should not vary.
•    Giving discount offer and other gift items.
•    Limited personal information.
•    Providing value added service at lower prices.
•    Full information regarding the product is simple words.
•    Innovative products.
•    Social shopping phenomenon.
•    Providing price comparison.
•    Transparent information regarding the product.
•    Indian customers want to buy things that do not cost them much.
6.3 E-marketplace in India can push Ecommerce
Electronic marketplace is an online platform or website to facilitate transactions between the buyers and the sellers at organizational level. After a seller registers himself with a particular e-marketplace he can display information regarding his product or services on that portal. Once a buyer registers itself with the e-marketplace he can have access to all the information he wants. It is also known as B2B exchanges. The first e-marketplace in India was established by New Delhi-based SteelNext for trading "mild" or commodity steel in the year 2001. The E-marketplace can:
•    Reduce the time and cost of interaction for the transactions.
•    Facilitate distant trade with efficiency.
•    Help in the payment procedure.
•    Help the buyers to find new suppliers and place orders with them.
•    Create a safe and friendly online deal process.
     6.4 Conclusion
•    Consumer preferences and interests: Even though the Internet makes it possible to search through a very large collection of items, searches require effort and consumers stop their search before reaching the optimal selection. Data-mining techniques applied to past purchase histories and browsing patterns will allow e-commerce systems to learn the preferences and interests of consumers. E-commerce sites will thus show advertisements and sales promotions relevant or applicable to a particular customer.
•    The entrepreneurs in India cannot rely on the online sales only, as it is only in initial stages of development. They will have to plan an alternative channel to keep up with the pace. Multi-channel sales will be most beneficial for the Indian scenario. Indian middle class is equal to the entire customer base in the US. Therefore, the future of Ecommerce in India is quite promising and the growing Internet Service Providers (ISPs) have aided the process even more.

7    Reference:
1.E-commerce and its impact on operations management (A. Gunasekaran, , a, H. B. Marrib, R. E. McGaugheyc and M. D. Nebhwanib)
2.Business Software Alliance. 2001. E-commerce and Developing Markets: Technology,
Trade and Opportunity.

3. http://unpan1.un.org/intradoc/groups/public/documents/un/unpan001216.pdf
4. http://www.ezilon.com/articles/articles/6473/1/Impact-of-E-Commerce-on--Supply-Chain-Management
5. http://www.chillibreeze.com/articles_various/Ecommerce.asp
6. http://www.slideshare.net/dmunjal/future-of-ecommerce-in-india
7. http://pcquest.ciol.com/content/businesscomputing/102101102.asp

8    Links:
1.Electronic Commerce World Journal homepage. http://www.ecworld.utexas.edu
2.Varian, Hal R. Markets for Information Goods (University of California, Berkeley: April
1998, revised October 16, 1998). Available from http://www.sims.berkeley.edu/edu/~hal/Papers/japan/. Accessed 25 September 2002.
3. Business Software Alliance homepage. http://www.bsa.org